Legal Studies
Final Exam
Course Introduction
Legal Studies explores the principles, institutions, and practices of law in society. This course examines the historical development of legal systems, constitutional frameworks, sources of law, and the role of courts and legal professionals. Students will analyze how laws are created, interpreted, and enforced, as well as legal reasoning and critical thinking skills necessary for understanding legal issues. Key topics include civil and criminal law, rights and responsibilities, the relationship between law and ethics, and the impact of legal decisions on individuals and communities. By the end of the course, students will have a comprehensive understanding of legal concepts and their real-world application.
Recommended Textbook
Essentials of the Legal Environment 4th Edition by Roger LeRoy Miller
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25 Chapters
1489 Verified Questions
1489 Flashcards
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Chapter 1: Business and Its Legal Environment3
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Sample Questions
Q1) In Nebraska, the highest-ranking (superior)law is
A)a case decided by the Nebraska Supreme Court.
B)a provision in the Nebraska constitution.
C)a rule created by a Nebraska state administrative agency.
D)a statute enacted by the Nebraska legislature.
Answer: B
Q2) In a suit against Owen, Phil obtains specific performance.This is
A)an order to do or to refrain from doing a particular act.
B)an order to perform what was promised.
C)a payment of money or property as compensation.
D)the cancellation of a contract.
Answer: B
Q3) Uniform laws apply in all states, including those in which the laws have not been adopted.
A)True
B)False
Answer: False
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Chapter 2: Shifting Legal Priorites for Business:
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Sample Questions
Q1) Clark appeals a decision in his suit against Dona, grounded on rights provided in the U.S.Constitution, to the United States Supreme Court.The task of the Court to interpret and give meaning to those rights is made more difficult because A)foreign laws affect the legal environment unpredictably.
B)government's role alters with each new election.
C)parties' expectations vary with each step in the judicial process.
D)society's perceptions and needs change over time.
Answer: D
Q2) Capital Credit Company files a suit against Downtown Developers, Inc., and seeks, as part of discovery, certain electronic documents in Downtown's possession.Responding to this request will most likely be required if the documents contain data that is relevant and
A)accessible.
B)privileged.
C)recoverable.
D)text only.
Answer: A
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Chapter 3: Courts and Alternative Dispute Resolution
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Sample Questions
Q1) Mandatory arbitration clauses in employment contracts are not enforceable.
A)True
B)False
Answer: False
Q2) Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor.Lora and Ned are residents of Ohio.Ned could ask for a change of venue on the ground that Ohio
A)has a sufficient stake in the matter.
B)has jurisdiction.
C)has sufficient minimum contacts with the parties.
D)is a more convenient location to hold the trial.
Answer: D
Q3) Refer to Fact Pattern 2-1.Resolving the dispute between Java and Kaffe by having a neutral third party render a binding decision is one of the advantages of A)arbitration.
B)conciliation.
C)intervention.
D)mediation.
Answer: A
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Page 5
Chapter 4: Ethics and Business Decision Making
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Sample Questions
Q1) Flexo Trucking Company transports hazardous waste.The company knows that Garn, one of its drivers, drives longer hours than federal regulations permit.One night, Garn exceeds the limit and has an accident.Spilled chemicals contaminate Hill City's water source, and the residents have to be evacuated.Flexo acted unethically because A)Flexo showed reckless disregard for Hill City's residents and others.
B)Garn exceeded the federal time limit.
C)harm was caused by an unfortunate accident.
D)Hill City should have better protected its water source.
Q2) Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of
A)its consumers, the community, and society only.
B)its employees and owners only.
C)its employees, owners, consumers, the community, and society.
D)no one.
Q3) Simply obeying the law does not fulfill all ethical obligations.
A)True
B)False
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Chapter 5: Constitutional Authority to Regulate Business
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Sample Questions
Q1) Procedural due process requires that any government decision to take a person's property must be made fairly.
A)True
B)False
Q2) ViolentVideoGames, Inc.markets a variety of shooting, fighting and hunting video games.A state statue is enacted that requires all video game manufacturers to label any games with an option to kill something as "excessively violent." A court would likely hold this regulation to be
A)an unconstitutional restriction of speech.
B)constitutional under the First Amendment.
C)justified by the need to protect individual rights.
D)necessary to protect national interests.
Q3) The Arkansas state legislature enacts a statute that prohibits the advertising of video games "because the games might be harmful to minors." Despite this new statute, the president of Games Marketing, Inc.(GMI), orders GMI marketers to place ads in various media.When a GMI ad appears on HDTV, a local television station, GMI and HDTV are charged with violating the statute.What is the defendants' best defense against a conviction
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Chapter 6: Administrative Law
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Sample Questions
Q1) By delegating some of its authority to make and implement laws, Congress violates the U.S.Constitution.
A)True
B)False
Q2) Beck seeks information about Donatello and other well-known businesspersons under the Freedom of Information Act.To obtain the information, Beck must
A)agree not to reveal any trade secrets.
B)reasonably describe the information.
C)get a court order.
D)have the businesspersons' permission.
Q3) Playground Equipment, Inc., is subject to regulations issued by the Occupational Safety and Health Administration (OSHA).Like other federal administrative agencies, the OSHA was created by
A)Congress, through enabling legislation.
B)the Federal Trade Commission, through the rulemaking process.
C)the president, through an executive order.
D)the U.S.Department of Labor, through a final order.
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Chapter 7: Torts and Product Liability
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Sample Questions
Q1) Under the doctrine of strict liability, liability is imposed strictly according to fault.
A)True
B)False
Q2) Toyoda Company buys gas pedals and other parts from subcontractors and puts them in its vehicles without changing their composition.If the pedals or other parts are defective, strictly liable for any damage caused by the defects are
A)neither Toyoda nor the subcontractors.
B)Toyoda and the subcontractors.
C)the subcontractors only.
D)Toyoda only.
Q3) The types of product defects that have traditionally been recognized in product liability law include inadequate warnings.
A)True
B)False
Q4) Tortfeasor is the term for a person who commits a tort.
A)True
B)False
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9
Chapter 8: Online Developments:
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Sample Questions
Q1) Grace hosts Harvest, a social networking site.Idle Fields, a competitive site, hires Jeb to anonymously post on Harvest stories that question its privacy practices.Harvest might most successfully sue Idle Fields for A)slander of quality.
B)intentional infliction of emotional distress.
C)false imprisonment.
D)none of the choices.
Q2) Catalyst Corporation is a small, U.S.-based business that makes sophisticated polymers for export.Under the National Export Initiative, the federal government is A)erecting barriers to deny free access to foreign markets.
B)boosting lending to small businesses, especially for export purposes.
C)placing less emphasis on exports than other governments.
D)playing a less active role in promoting exports in emerging markets.
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Chapter 9: Criminal Law and Cyber Crime
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Sample Questions
Q1) A misdemeanor is a crime punishable only by a fine.
A)True
B)False
Q2) Mariah takes off her ring and places it on her desk while she works.Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away.Nita has likely committed
A)burglary.
B)forgery.
C)larceny.
D)no crime.
Q3) Posing as Platinum Bank, Oswald e-mails Nadia, asking her to update her personal banking information through a link in the e-mail.She clicks on the link and types in the data, which Oswald promptly sells to Moe.This is
A)no crime.
B)employment fraud.
C)phishing.
D)vishing.
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Chapter 10: Intellectual Property and Internet Law
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Sample Questions
Q1) Because the Internet is vast, the unauthorized use of another's mark in a domain name is generally permissible.
A)True
B)False
Q2) A person can reproduce copyrighted material for purposes such as teaching, including multiple copies for classroom use, without paying royalties.
A)True
B)False
Q3) Sights Unseen, Inc., (SUI)sells scopes with distinctively designed and made lenses and mirrors to scientists.Telescopes, Etc.Corporation later begins to sell scopes with identical set-ups of lenses and mirrors, without SUI's permission, to consumers.This is most likely
A)copyright infringement.
B)patent infringement.
C)trademark infringement.
D)not infringement.
Q4) Copyright protection is automatic-registration is not required.
A)True
B)False
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Chapter 11: International Law in a Global Economy
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Sample Questions
Q1) The management of Sport Shoes Corporation, a U.S.firm, wants to expand into foreign investment and employment markets.They are considering either opening their own production facility in a foreign country or entering into a licensing agreement with a foreign firm.What are the advantages and disadvantages of each of these courses of action
Q2) Restrictions on imports may include quotas.
A)True
B)False
Q3) Capital Diversified Corporation (CDC)owns assets in Dagistan, a new country in Asia.The government of Dagistan wants to nationalize all assets owned by foreign firms and investors.What can CDC do Can it at least obtain payment for the assets
Q4) Tariffs are taxes on imports.
A)True
B)False
Q5) Fabiola, or any foreign citizen, can bring a civil suit in a U.S.court for
A)a violation of a treaty of the United States only.
B)a violation of a treaty of the United States or of the law of nations.
C)a violation of the law of nations only.
D)no purpose.
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Chapter 12: Business Organizations
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Sample Questions
Q1) Hollister and Gladys do business as partners in Frothy Confections.For federal income tax purposes, Frothy Confections would be treated as
A)a "pass-through" entity.
B)a natural person.
C)a tax-paying entity.
D)a partnership by estoppel.
Q2) A sole proprietorship continues after the death of the proprietor.
A)True
B)False
Q3) Venture Capital, LP, is a limited partnership.Its limited partners include more than 150 sophisticated investors and investment professionals.A Venture limited partner must A)act as the firm's manager.
B)not participate in the firm's management.
C)cannot invest in Unified Fund, one of Venture's competitors.
D)assume liability for all partnership debts.
Q4) Corporate directors and officers are insurers of business success.
A)True
B)False
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Chapter 13: Beyond Our Borders:
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12 Verified Questions
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Sample Questions
Q1) Kitschen Equipe, GmBH, a German firm, orally agrees to sell six large freezers to Mon Desir Cafés, S.A., in France.Kitschen fails to deliver, Mon Desir does not pay, and the parties take their dispute to court.France does not require certain types of contracts to be in writing.Without a writing requirement, the parties can prove their agreement and its terms by
A)evidence of conduct.
B)oral testimony.
C)written documents.
D)all of the choices.
Q2) Marshal is interested in filing for bankruptcy in the U.S.Bankruptcy Court for the District of New Mexico but does not have an attorney.Marshal and others with questions about bankruptcy can access a chat box via the court's Web site.Downsides to using the box include
A)misunderstanding the response.
B)garbled voice messages.
C)the absence of attorneys and other bankruptcy specialists online.
D)the long wait time for an answer.
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Page 15
Chapter 14: Formation of Traditional and E-Contracts
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Sample Questions
Q1) When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop.There is no discussion of a price, and Jeff and Kwik do not sign any documents.After the tow, Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill, this is
A)an express contract.
B)an implied contract.
C)a formal contract.
D)no contract.
Q2) Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15.These promises are most likely
A)enforceable.
B)valid.
C)void.
D)voidable.
Q3) An online offer should include provisions relating to dispute settlement.
A)True
B)False
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Page 16
Chapter 15: Contract Performance, Breach, and Remedies
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Sample Questions
Q1) Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair, Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages, Carousel can recover
A)the cost of new turf.
B)the difference between Damon's price and the actual cost of repair.
C)the loss of profit from the canceled game.
D)nothing.
Q2) A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause stating that rights under the contract cannot be assigned.This ordinarily prohibits
A)any assignment.
B)no assignment.
C)only an assignment of contract rights to personal services.
D)only an assignment that would change the obligor's risk.
Q3) The standard measure of compensatory damages is the value of the breaching party's performance under a contract.
A)True
B)False
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Chapter 16: Sales and Leases
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Sample Questions
Q1) Under the UCC, prompt shipment of goods is considered an acceptance of an offer to buy the goods.
A)True
B)False
Q2) If a buyer breaches a contract and the seller resells the goods to another party, the seller cannot hold the breaching buyer liable for any loss.
A)True B)False
Q3) Puffery creates an express warranty.
A)True B)False
Q4) All oral contracts are enforceable under the UCC.
A)True B)False
Q5) In most sales, sellers warrant that they have good and valid title to the goods sold. A)True B)False
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Page 18
Chapter 17: Creditors Rights and Bankruptcy
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Sample Questions
Q1) Bankruptcy law is state law.
A)True
B)False
Q2) Wilson wants to file an ordinary, or straight, bankruptcy.Wilson should file using
A)Chapter 7.
B)Chapter 11.
C)Chapter 13.
D)his state's bankruptcy code.
Q3) A surety can assert the debtor's bankruptcy as a defense.
A)True
B)False
Q4) Refer to Fact Pattern 14-1.If Nina recovers less than she is owed, she can realize the difference from
A)any property that Mary owns.
B)only exempt property that Mary owns.
C)only nonexempt property that Mary owns.
D)property that any other member of Mary's family owns.
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19
Chapter 18: Mortgages Foreclosures After the Recession
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Sample Questions
Q1) Refer to Fact Pattern 15-1.Under federal law, disclosures with respect to one of Northeast's loans must be provided
A)a certain number of days after the loan is finalized.
B)a certain number of days before the loan is finalized.
C)at the same time at which the loan is finalized.
D)at whatever time is most rational and appropriate.
Q2) Lenders are required to charge prepayment penalties on most subprime mortgages and home equity loans.
A)True
B)False
Q3) Velma borrows $110,000 from Watershed Bank to buy a home.If she fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan.This is
A)a short sale.
B)forbearance.
C)foreclosure.
D)the equitable right of redemption.
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Chapter 19: Employment, Immigration, and Labor Law
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Sample Questions
Q1) During a union election campaign, Autowerks Repair, Inc., prohibits on-site solicitations by any party, including Mechanics Union, which is seeking the workers' unionization.This violates
A)federal labor law.
B)federal elections law.
C)federal employment discrimination law.
D)no federal law.
Q2) An employee can usually recover workers' compensation for injuries occurring on the commute to and from work.
A)True
B)False
Q3) During a union election campaign, Sapphire Blue Finance Company prohibits on-site solicitations by Credit Workers Union, which is seeking the workers' unionization, while permitting charities to solicit the same workers.This violates A)federal labor law.
B)federal elections law.
C)federal employment discrimination law.
D)no federal law.
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21
Chapter 20: Beyond Our Borders:
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Sample Questions
Q1) Women's groups contend that sexual harassment is viewed with "quiet tolerance" in corporations based in A)Asia.
B)Europe.
C)North America.
D)South America.
Q2) Geo Global Corporation, a U.S.firm, requires its employee Marcy to stay connected with work after office hours through a smartphone.In the United States, Marcy and other employees who are required to use mobile devices after work may have a valid claim to overtime wages if they
A)are not exempt under the overtime regulations of the Fair Labor Standards Act.
B)are not reimbursed by their employers for the use.
C)are supplied with the devices by their employers.
D)do business with international contacts.
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Chapter 21: Employment Discrimination
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Sample Questions
Q1) Dick works for First City Bank.When his spouse Elin is diagnosed with Lou Gehrig's disease, Dick asks to take temporary leave to care for her.Instead, First City discharges him.He files a suit against the bank under the Americans with Disabilities Act of 1990.Most likely, Dick can
A)recover for association discrimination.
B)recover for reverse discrimination.
C)recover for disparate-impact discrimination.
D)not recover.
Q2) Paula, a disabled person, applies for a job at Quantity Corporation for which she is well qualified, but for which she is rejected.Quantity continues to seek applicants and eventually fills the position with a person who is not disabled.Paula is most likely to succeed in a suit against Quantity for discrimination under the Americans with Disabilities Act of 1990 if she can show that
A)she was not hired solely because of her disabil?ity.
B)she can function well with corrective devices or on medication.
C)her disability causes her undue hardship.
D)she could not perform the job even with reasonable accommodation.
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Page 23
Chapter 23: Antitrust Law and Promoting Competition
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Sample Questions
Q1) Size alone does not determine whether a firm is a monopoly.
A)True
B)False
Q2) An act must substantially affect interstate commerce to violate antitrust law.
A)True
B)False
Q3) A court deems an agreement between Silver Saddles Saddlery and Time Tested Tack, Inc.to be a per se violation of the Sherman Act.The court is
A)prevented from determining whether the agreement's benefits outweigh its anticompetitive effects.
B)required to unanimously decide whether the agreement's benefits outweigh its anticompetitive effects.
C)required to apply the rule of reason.
D)required to issue a formal complaint against Silver Saddles and Time Tested Tack.
Q4) A restraint of trade is an agreement between firms that has the effect of reducing competition in the marketplace.
A)True
B)False
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25
Chapter 25: Investor Protection, Insider Trading, Corp Gov
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Sample Questions
Q1) Refer to Fact Pattern 20-3.Under the Securities Exchange Act of 1934, Geoff is most likely
A)liable for insider trading.
B)not liable because Geoff did not prevent others from profiting.
C)not liable because Geoff did not solicit information from Dhani.
D)not liable because Geoff does not work for Eureka.
Q2) Heavy Hauling, Inc., is a public company whose shares are traded in the public securities markets.Under the Sarbanes-Oxley Act of 2002, to ensure that Heavy Hauling's financial results are accurate and timely, the firm's senior officers must set up and maintain
A)internal "disclosure controls and procedures."
B)external "release and reveal timetables."
C)personal "peruse and review liability policies."
D)public "information and discussion forums."
Q3) When Looking Glass Corporation wishes to issue certain securities, it must provide sufficient information for Alice, and other unsophisticated investors, to evaluate the financial risk involved.Specifically, the law imposes liability for making a false statement or omission that is "material." What sort of information would Alice consider material
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